This year with our business it has been a steep learning curve for myself especially with regard to online business. Bricks and mortar I know inside out and every trick in the book. Online is very different yet it can be treated the same as bricks and mortar if you are allowed. I say that word "allowed" as I learned some interesting information today that will change how we work.
This is not easy as this was taken at 5.30pm this evening and we still have 1 more container to off load and prepare orders for tomorrow. Another late night with a skeleton staff crew which is kind of unfair. At least my punching bag crew are on hand to help.
Our current system requires us to supply the online platforms with weekly holding stock plus daily sales that happen via the two main accounts. The one distribution center (DC) is a days drive away in Cape Town so it is not easy to control.
The element of unforeseen circumstances out of your control has resulted in two account suspensions due to missing delivery time slots. I thought this is he way it has to be because surely if there was another way then it should be discussed.
Apparently we can supply stock for 30 days but the only reason this was not accepted by our client was the account managers would lose some of their commissions. When I learned about this I nearly hit the roof because their self centered greed has caused mayhem.
Once their items are stored in the DC they pay a service storage fee and that fee would be subtracted off their commissions. Little do they realise they would actually be making more due to the expense of sending down smaller batches twice per week. If we sent down 2 or 3 truck loads in one go then the cost of doing many pallet sized deliveries would end up being far cheaper and I would guess a saving of around 70%.
Another order completed that will be sent out on Monday and tomorrow we start out first orders for another brand. This is a big order that will keep us busy until next Friday f we have no further interruptions.
The risk of having an account shut down is eliminated immediately and if an item is running out it could be topped up besides the truckloads going down once per month. The over time of chasing our behinds would stop and this would be far better for everyone involved financially and mentally.
This is why holding back information by thinking you are being smart is plain stupid. They were worrying about their pocket not understanding that they were shafting everyone including themselves. I do not have time for people like this who are thinking of themselves only and not knowing what the other side of the company is doing. When you do not understand how the business works then it is even more reason to share all the information. My budget will look a whole lot better next year because of these transport savings. I am currently spending for what 8 trucks would cost monthly compared to around 3 so a huge saving when you start to add things up. Loose pallets are far more expensive (3x) sending with split loads compared to having your own designated truck load.
The savings are not only in the transport, but in the overtime and food we are having to supply. I have made sure those accounts are now receiving this extra billing as this is for their expense and not my pocket. They say the best lessons are those that hit you in the pocket and I am making sure they feel the pain.